Aker Solutions Asa · OSL:AKSO
Aker Solutions Asa — Merger or Acquisition (July 2020)
26 slides from Aker Solutions Asa's merger presentation, Jul 17, 2020
Slide 1: Bringing Together Aker Solutions and Kvaerner
Bringing Together Aker Solutions and Kvaerner Investor Presentation July, 2020 2020 © Aker Solutions
Slide 2: Complementary Capabilities Create Stronger Offering
Complementary Capabilities Create Stronger Offering A leading provider of Creating a leading execution partner engineering, procurement and construction (EPC) to deliver low-carbon oil and gas and services to the energy industry renewables projects A leading global provider of products, front-end, e
Slide 3: Transaction Summary – A Merger of Equals
Transaction Summary – A Merger of Equals ■ Aker Solutions and Kvaerner to merge to gain size, combine capabilities and strengthen balance sheet to accelerate transition to sustainable energy production ■ Exchange ratio will be based on one month volume-weighted average price (VWAP) ■ The merger is s
Slide 4: Industrial Rationale
Industrial Rationale Revitalizing growth ■ Mid-term robustness in global Oil & Gas ■ Reposition with size and capabilities to succeed in current market ■ Industry partner for decarbonization and electrification ■ Stable aftermarket service business ■ Forceful transition into Renewables – with integr
Slide 5: A Supplier Accelerating the Transition to Sustainable Energy Production
A Supplier Accelerating the Transition to Sustainable Energy Production Enable low-carbon oil and gas Drive differentiation and efficiency in Provide integrated solutions production, building on alliances our industries through technologies for renewable energy with customers and partners and digita
Slide 6: Positioning for Growth at a Pivotal Time for our Industry
Positioning for Growth at a Pivotal Time for our Industry Accelerating Transition Radical Improve Efficiency in to Renewables Oil & Gas Deliveries ▪ Broaden portfolio of capabilities & activities ▪ Digitally transform engineering, construction and project management ▪ Differentiation through Front E
Slide 7: More Energy Lower Carbon
Energy Outlook - Dual Challenge More Energy Lower Carbon © 2020 A New Era for an Industry in Transition July 17, 2020 Slide 7
Slide 8: Decarbonizing Offshore Oil and Gas
Decarbonizing Offshore Oil and Gas Low-Carbon Solutions Electrification Energy Optimization 2020 © Aker Solutions
Slide 9: Integrated Offering
Integrated Offering Covering Asset Lifecycle Integrated offering Partial offering Feasibility Marine Hook Up & Maintenance Decommissioning Engineering Procurement Construction & FEED Operations commissioning & modification & recycling Topsides & Floaters Substructures Subsea Production Systems SURF
Slide 10: Johan Sverdrup Showcasing Our Capabilities
Johan Sverdrup Showcasing Our Capabilities Living Quarters Production Platform 1 Drilling Platform Riser Platform Production Platform 2 Feasibility Optimize FEED Engineering Procurement Construction Transportation Hook Up Commissioning Field EPMA Aker Solutions Aker Solutions Living Quarters Kvaerne
Slide 11: Selected Ongoing Oil & Gas Projects
Selected Ongoing Oil & Gas Projects Johan Sverdrup RP Njord Upgrade Hod UWHP Customer: Equinor Customer: Equinor Customer: AkerBP Country: Norway Country: Norway Country: Norway MMO frame agreements Exxon Guyana SPS Breidablikk Lingshui Customers: Several Customer: Equinor Customer: CNOOC Country: N
Slide 12: Well Positioned for Several Major O&G Prospects
Well Positioned for Several Major O&G Prospects NOAKA EPC Wisting FPSO Jackdaw WHP Customer: Equinor / Aker BP Customer: Equinor Customer: Shell Country: Norway Country: Norway Country: UK Troll West Electrification Exxon Guyana SPS Jansz SSC Customer: Equinor Customer: Exxon Customer: Chevron Count
Slide 13: Solid Foundation for Transition to Renewable Energy
Solid Foundation for Transition to Renewable Energy Our Core Capabilities… ...are needed in emerging industries Photo: C. Thomas Photo: N. Doherty © 2020 A New Era for an Industry in Transition July 17, 2020 Slide 15
Slide 14: Combining Complimentary Capabilities Within Renewables
Combining Complimentary Capabilities Within Renewables Offshore Wind CCUS Hydrogen Offering Offering Offering ▪ Integrated delivery of: ▪ Delivery of carbon capture plants ▪ Capabilities to deliver hydrogen ▪ Wind substructures ▪ Project management production facilities ▪ Converter- and substations
Slide 15: Leading Supplier to Offshore Wind
Leading Supplier to Offshore Wind Project: Hywind Tampen (ongoing) ▪ World’s largest floating offshore wind park (88 MW) ▪ Will supply power to five oil and gas platforms ▪ 200,000 metric tons reduced CO2 per year ▪ EPCI delivery of 11 concrete floating foundations © 2020 A New Era for an Industry i
Slide 16: Leading Supplier to Carbon Capture
Leading Supplier to Carbon Capture Project: Norcem ▪ Integrated project delivery with Aker Carbon Capture ▪ 400,000 tons CO2 captured p.a. ▪ Planned operation in 2024 © 2020 A New Era for an Industry in Transition July 17, 2020 Slide 18
Slide 17: Digital Solutions to Reshape the Industry
Digital Solutions to Reshape the Industry ▪ Reducing project execution time ▪ Enabling automated operations, saving cost and improving HSSE ▪ Unlock insight and information transparency ▪ Drive standardization to improve efficiency and minimize risk ▪ Reduce cost by enabling predictive maintenance ▪
Slide 18: Building Strong Collaborations and Integrated Deliveries
Building Strong Collaborations and Integrated Deliveries Decarbonizing Aker Solutions Renewables Oil & Gas Attractive Engineering and project realization partner based on core competence, system knowledge and 180 years of industry experience Leverage core customer relationships to transform together
Slide 19: Global Presence in Key Energy Hubs
Global Presence in Key Energy Hubs Proven model for regional Norway execution with local partners Finland United Kingdom Russia Canada United States Italy Cyprus Qatar Saudi Arabia China UAE India Ghana Brunei Nigeria Malaysia Republic of Congo Tanzania 25 Countries Brazil Angola Mozambique 50+ Loca
Slide 20: Main Businesses
Main Businesses Front End and Renewables Topsides and Subsea Electrification, Engineering Facilities Maintenance and Modifications ▪ Software-enabled ▪ Offshore and floating wind ▪ One-stop-shop for oil & ▪ Extensive product and ▪ Solutions for the engineering house with products and services; gas a
Slide 21: Solid Financial Performance and Value Creation
Unaudited proforma figures Solid Financial Performance and Value Creation Revenue NOK Billion Oil & Gas Renewables CAPEX NOK Billion 38 1.1 34 ~29 0.6 0.4 2019a 2020 estimate 2023 target 2025 ambition 2019a 2020 estimate 2023 target 2025 ambition ■ Ambition to grow revenue base by approximately ■ CA
Slide 22: Merger to Accelerate Cost Reduction
Unaudited proforma figures Merger to Accelerate Cost Reduction Expected to deliver NOK 1.5 billion in Cost-Saving Initiatives NOK Billion pre-tax cost savings ~30% Cost-Saving Initiatives ■ Optimized internal capacity to expected activity levels ■ Footprint adjustment ■ Reduction of overlapping func
Slide 23: Improved Financial Capacity and Cash Conversion
Unaudited proforma figures Improved Financial Capacity and Cash Conversion Expected to deliver NOK 1 billion+ Pro-Forma Capital Structure NOK Billion in annual free cash flow Aker Solutions Kvaerner ~3** Main Initiatives and Targets New Aker Solutions ■ Significant deleveraging of balance sheet ~3**
Slide 24: Governance Structure
Governance Structure Management Board of Directors* Leif-Arne Øyvind Kjell Inge Langøy Eriksen Røkke Kjetel Digre Idar Eikrem Chairman Director Director CEO, Aker Solutions CFO, Aker Solutions New Executive Management Team EVP EVP EVP EVP EVP EVP Jan Arve Birgit Aagaard- Lone Fønss Torill EMT to be
Slide 25: High-Level Timeline and Regulatory Process
High-Level Timeline and Regulatory Process JUL Announcement to the Oslo Stock Exchange about the planned merger and transactions Notice of EGM: Distribution of shares for Aker Offshore Wind and Aker Carbon Capture AUG EGM: Aker Offshore Wind and Aker Carbon Capture Distribution of shares and listing
Slide 26: Bringing Together Aker Solutions and Kvaerner
Bringing Together Aker Solutions and Kvaerner 2020 © Aker Solutions July 17, 2020 Slide 28